SPH: Retesting resistance.

SPH closed at $4.08 today, retesting the resistance identified some time back. This is the third time it has hit $4.08 since 16 July. Could it overcome this resistance soon?

Note the falling volume as price tried to move higher.  The MFI has also broken down from its uptrend. Demand is flagging. OBV, however, is rising somewhat after a brief decline, suggesting renewed accumulation but the gradient is gentler now and one could even say it's flat as it is more or less the same level now as it was on 16 July. What am I trying to say? The technicals are relatively weaker now.

However, the 20dMA is still rising strongly and if price manages to stay above the 20dMA in the near term, SPH could be doing a correction using time and the 20dMA could push the price past $4.08 eventually.  Keep an eye on the OBV.  If it stays flat while the MFI declines, it would mean a lack of distribution and this might prevent price from sinking too much even as demand weakens.

Immediate support is at $3.98.  This is where we find the rising 20dMA and it is also a natural candlestick support level.  Good luck to fellow shareholders.

China Hongxing: Target hit.

On 24 June, I wrote "With momentum oscillators turning up strongly, we could possibly see 16c tested." Today, China Hongxing hit the breakout target of 16c.  What next?

The OBV shows a sharp increase in accumulation.  No distribution is taking place yet, it seems.  However, MFI and RSI have both pushed into overbought territories. Also, notice the negative divergence between price and volume. A pull back in the near future is not unrealistic. Immediate support is at 14.5c followed by a stronger support at 13.5c. Remember, it's all about probabilities.

What would I do? I would lock in some gains. If I were to stay vested, it would be with a smaller position at this point in time. Congratulations to anyone who made money from this and if you see fit to contribute to my pocket money fund, thank you too. ;)

Related post:
China Hongxing: Breakout.

Mapletree Log: Acquires properties in Japan.

Mapletree Logistics Trust (a Temasek linked REIT), has shown its confidence in the Japanese economy by acquiring three distribution centres in Japan for a total of JPY13b or S$200m.

"MapletreeLog says it has sufficient financial flexibility and capacity to fund the Acquisition which is expected to be completed by end 3Q 2010. The purchase price and other acquisition costs of the properties will be fully funded by debt, which will bring MapletreeLog’s gearing level to 43.6%, after taking into account all acquisitions announced to date." (The Edge, 28 July 10, 13.23)

Its presentation slides show these acquisitions to be yield accretive. The investment would generate a return of 7.3% per annum.  At the last traded price of 88c, the yield is currently about 6.8%. These Japanese properties are likely to bump up DPU by 5.6% per annum. The properties are also freehold in nature.  No "depreciation". See presentation slides here.

Having said this, with these latest acquisitions, gearing level would be pushed up to 43.6%.  One wonders if Mapletree Log would go to unitholders with hat in hand in the near future or, perhaps, do a share placement.

MapletreeLog acquires 3 properties in Japan for $200m
Wednesday, 28 July 2010

© 2010 - The Edge Singapore

 

Alexa

I stumbled upon this today. I was totally blown away.  This is a web information company and it has analyses of all the websites in the world.  Well, it certainly looks that way to me.

I entered my blog's URL in the search bar and a one page analysis appeared.  Amazing!

According to Alexa:
Singaporeanstocksinvestor.blogspot.com has a three-month global Alexa traffic rank of 667,393. Roughly 33% of visits to the site consist of only one pageview (i.e., are bounces). Visitors to the site spend approximately two minutes on each pageview and a total of ten minutes on the site during each visit. Visitors to the site view an average of 2.5 unique pages per day, and Singaporeanstocksinvestor.blogspot.com has been online for at least nine years.

Alexa Traffic Rank - 667,393 

Traffic Rank in SG - 3,808

I don't know about the rest of the information but my blog is not nine years old. So, perhaps, we should not take Alexa too seriously.  Having said this, I am still amazed by this service.  No wonder they say there are no secrets on the internet. We have to be careful of what we do in cyberspace!

Visit Alexa here.